A naukri.com initiative
Codecondo
1d
156
Proactive Treasury Risk Management: A Guide for CFOs
- Effective treasury risk management is a proactive imperative for CFOs amid economic uncertainties and regulatory challenges.
- A comprehensive risk management framework transforms treasury from a reactive function to a strategic enabler of resilience and growth.
- The first step in developing a risk management framework is understanding the various risks the organization faces.
- Organizations need clear policies and controls to manage identified risks such as hedging instruments for financial risks.
- Strategies like spreading investments, using technology, and encouraging collaboration can help in effective risk management.
- Robust monitoring systems and transparent communication to stakeholders are essential for tracking and reporting risks in real-time.
- Proactive risk identification and assessment, leveraging advanced technology, fostering collaboration across departments, and prioritizing liquidity strategies are some best practices for effective risk management.
- The future role of CFOs in treasury risk management will involve driving strategic decision-making, championing technology adoption, enhancing stakeholder communication, reducing compliance risks and building resilience against emerging risks.
- CFOs can lead their organizations towards greater financial resilience and agility with the right tools, insights, and leadership.
- Effective treasury risk management demands a commitment to continuous improvement and a proactive approach.
Read Full Article
9 Likes
For uninterrupted reading, download the app